“It’s expected owner occupiers, including first home buyers, will be stepping in to pick up some of this opportunity in the market," he said.

Loans for established dwellings especially took a hit in August, experiencing a drop of 3.9 per cent on the previous month

Despite this, Mr Flavell remained confident that other factors would correct this dip in the coming months.

“It wasn’t all bad news however, with the number of home loans for the construction of new dwellings rising 3.7 per cent over the course of the month,” he said.

“Spring is a notoriously hot selling season [and] this, combined with the fact that interest rates continue to sit at record lows, I would not be surprised to see an uplift in the number of home loan approvals between now and the end of the year.”